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What is a Short Sale Anyway?

An increase in foreclosure rates will inevitably bring with it an increase in short sales. But what is a short sale?

A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.

As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.

However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. And don’t think that the decision for accepting a short sale is solely in the hands of the lender. Sure the lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.

The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.

If you’re on the selling side of a short sale, consider having your agent or other experienced professional negotiate with your lender for a better deal. And remember, if the lender does accept a short sale and forgives part of your debt, that is considered taxable income and you must declare it as such to the IRS.

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We built new homes in Holley by the Sea in Navarre FL, Woodlawn Heights, Gulf Breeze, Hammersmith, Habersham, North Harbor, Pace, FL, Cottonwood, Adrian Woods, Milton, FL Nobles Plantation, Pace, FL. and more! for over 25 years we built quality new homes and have won numerous Parade Of Homes Awards! Mr. Gooden was chosen Builder of the Year!

It has been an amazing time in my life. We are no longer Building New Homes, but now Selling Real Estate and Listing and Selling Homes!
I am very proud to work with Mr. Gooden at Gooden Homes. I have been representing Gooden for over 13 years and now I am Reselling Gooden Homes as well as many other Real Estate Properties and other Builders New Homes as well. I have the best of both worlds. I would love to help you with any of your REAL ESTATE needs.

Whether Buying or Selling? I would really appreciate the opportunity.

Currently, there are 4 bedroom, 3 bath homes, over 3000 sq ft of living area with 3 car garages, and Large Covered Patios and many extra upgrades, and most are selling for around $336,900.  Maybe you would like to Buy Your New Home Today? 

We can actively participate and help to locate your perfect place to call HOME.....

I even have 4 bedrooms, 2 1/2 baths, 2 car garages beginning in the $280's.

I can help you in selling your current home. Would you like a Market Analysis?  It would be my pleasure to help you get your facts and figures together.

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